Required information Problem 2-2A (Algo) Computing and recording job costs; preparing schedule of cost of goods manufactured LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Additional Information Job 306 Job 307 Job 308 $ 27,000 $ 37,000 22,000 11,000 17,000 8,500 137,000 200,000 $115,000 102,000 151,000 101,000 ? 7 Finished Finished In process (sold) (unsold) a. Raw Materials Inventory has a March 31 balance of $84,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $381,000. c. Actual overhead costs incurred in April are indirect materials, $57,000; indirect labor, $27,000; factory rent, $40,000; factory utilities, $20,000; and factory equipment depreciation, $60,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $640,000 cash in April. Problem 2-2A (Algo) Part 1 Required: 1. Determine the amount of overhead applied to each job in April. Predetermined overhead rate Overhead applied 306 0.50 307 0.50 308 April Total $ 0 0.50 0.50 Marco Company shows the following costs for three jobs worked on in April. Balances on March 31, Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct labor used Direct materials used Overhead applied Status on April 30 Additional Information Job 306 Job 307 Job 308 $ 27,000 22,000 11,000 $ 37,000 17,000 8,500 137,000 200,000 $ 115,000 102,000 ? Finished (sold) 151,000 101,000 Finished (unsold) In process a. Raw Materials Inventory has a March 31 balance of $84,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $381,000. c. Actual overhead costs incurred in April are indirect materials, $57,000; indirect labor, $27,000; factory rent, $40,000; factory utilities, $20,000; and factory equipment depreciation, $60,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $640,000 cash in April. Problem 2-2A (Algo) Part 2 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). Job 306 Job 307 Job 308 March Direct materials $ 27,000 $ 37,000 Direct labor 22,000 Overhead applied 11,000 17,000 8,500 Work in process, beginning April Direct materials 137,000 200,000 Direct labor 102,000 151,000 115,000 101,000 Overhead applied Costs added in April 239,000 351,000 Total costs Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in: April Total $ 452,000 354,000 0 216,000 806,000 $ 0 < Previ 2 3 4 5 of 5 Next